2.8 RISK MONITORING
The monitoring process systematically tracks and evaluates the
effectiveness of risk-handling actions against established metrics. Monitoring
results may also provide a basis for developing additional handling options
and identifying new risks. The key to the monitoring process is to establish a
cost, schedule, and performance management indicator system over the entire
program that the PM uses to evaluate the status of the program. The indicator
system should be designed to provide early warning of potential problems to
allow management actions. Risk monitoring is not a problem-solving technique,
but rather, a proactive technique to observe the results of risk handling and
identify new risks. Some monitoring techniques can be adapted to become part
of a risk indicator system:
- Test and Evaluation (T&E). A well-defined (T&E)
program is a key element in monitoring the performance of selected
risk-handling options and developing new risk assessments.
- Earned Value (EV). This uses standard DoD cost/schedule
data to evaluate a programís cost and schedule performance in an integrated
fashion. As such, it provides a basis to determine if risk-handling actions
are achieving their forecasted results.
- Technical Performance Measurement (TPM). TPM is a
product design assessment which estimates, through engineering analysis and
tests, the values of essential performance parameters of the current design
as effected by risk-handling actions.
- Program Metrics. These are used for formal, periodic
performance assessments of the various development processes, evaluating how
well the system development process is achieving its objective. This
technique can be used to monitor corrective actions that emerged from an
assessment of the critical risk processes.
- Schedule Performance Monitoring. This is the use of
program schedule data to evaluate how well the program is progressing to
Paragraph 5.7 describes
several monitoring techniques, e.g., earned value, etc.
The indicator system and periodic reassessments of program risk should
provide the PMO with the means to incorporate risk management into the overall
program management structure.